Tesla Electric Vehicle (EV) Sales (TSLA) in China fell more than 30% in July from June, data from the China Passenger Car Association (CPCA) showed on Thursday, as the company halted production while Chinese electric vehicle makers gained share market with more affordable offers.
Key Takeaways
- Tesla's electric vehicle sales in China fell more than 30% in July from June as domestic Chinese manufacturers gained market share as Tesla halted production.
- Tesla sold 64,285 Chinese-made EVs last month, down 31% from June's total, but up 128% from the same quarter last year, when a Shanghai factory upgrade has dampened production and sales.
- Tesla was the only foreign brand to increase its market share of electric vehicles in China in the first half of 2023, the company's second quarter deliveries hit a record 156,676.
Tesla sold 64,285 Chinese-made electric vehicles in July, down 31% from the June total but up 128% from the same quarter last year, when an update level at Tesla's Shanghai gigafactory has dampened production and sales, Reuters reported. Last month's drop was partly due to Tesla slowing some production as it prepared for a revamped Model 3 launch.
The drop comes at a time when China's domestic electric vehicle makers are gaining ground on Tesla in their home market. Chinese automaker BYD, whose cars are generally more affordable for domestic buyers, has strengthened its lead over the U.S. automaker in sales of Chinese-made electric vehicles. Sales jumped 61% from the same quarter last year to more than 260,000 passenger vehicles as Chinese consumers bought the company's lower-priced models.
Other startups Chinese companies such as Nio (NIO) and Xpeng (XPEV) also saw higher deliveries last month, supported by the release of new electric SUV models.
Although losing ground Manufacturers Chinese automobiles, Tesla was the only foreign brand to increase its market share in China in the first half of 2023, with the company's second-quarter deliveries hitting a record 156,676.
"New Energy Vehicle," or NEV sales in China likely totaled 750,000 last month, the CPCA is expected to report when it releases full July results later this month. Just over 800,000 NEVs were sold in the country in June, according to the China Association of Automobile Manufacturers, up 33.4% year-on-year.
Tesla shares have slightly increased from 12 p.m. EDT Thursday. They have more than doubled so far this year. Shares of rival Chinese electric vehicle makers Xpeng and Nio have risen 90% and 50% respectively over the same period.
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Source: investopedia.com
